Question

Hans deposits $6000 into an account that pays simple interest at a rate of 5% per year. How much interest will he be paid in the first 4 years?

Answer 1

Hans deposits $6000 into an account.

=> Principal P = 6000

Simple interest rate 5% per year.

=> Rate R = 5% = 5/100 = 0.05

The formula to calculate the amount of interest after 4 years:

A = P x R x years = 6000 x (5/100) x 4 = 1200$

Hope this helps!

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